This report is to find out which mechanism is appropriate to enhance CSR. The author will analyse how CSR can be effect, and list several pieces of advantages of voluntary and disadvantages of mandatory, after a analysis of stakeholders' benefit, the author will give pieces of recommendations about how Voluntary CSR can be improved. Context
In the 1960s, the word "globalize" appeared, which means "to make global in scope or application"(Chanda, 2003). In the international economy, the multinational corporations' position and influence is growing and since the corporates need to take higher responsibility for the social and environmental effects which were usually comes from its own operational systems. Therefore, there is lots of different of people have growing interest in Corporate Social Responsibility (CSR) (Forsberg, 2003).However, there are lot of debate about Corporate Social Responsibility since it be established among divides academics, managers and states(Jenkins, 2005), such as which types of method can enhance CSR? Mandatory regulations or voluntary guidelines.
After a brief explanation about how to promote CSR, the author will using United Nations Global Compact(UNGC)'s CSR goals, and concentrate on two cases, analyse the positive effect about voluntary and also give negative influences about mandatory and finally give several pieces of recommendations about supervision.
Now, operating a business in this opening market is not simple as before. Like some problems defined by United Nations Environment Program (UNEP) about Cleaner Production(CP) in production process, products and services. Lot of aspects need to be considered in the whole phase of production process, for instance, in order to a sustainable development goal, Kim and Rigdon(1998) pointed out that pollution prevention, waste reduction and recycling materials should be included in the process of building industry.
The UN has launched a strategic policy named UNGC, UN Global Compact, which is a voluntarily joined business policy initiative to advance sustainable development and humane business(Global Compact, 2011). Basically, it composed by ten principles which cover four aspects, human rights, labour, environment and anti-corruption. In addition, how to define CSR? Hill et al. (2007) gave a definition that corporate social responsibility is the quality of life of stakeholders in the economic, legal, moral, and philanthropic actions. Recently, many corporate put their attention on their social performance, if one company has the high performance of social responsibility , it may stimulate the demand of stock investors (Mackey, et al., 2007). As Dhaliwal et al. (2009) show that high CSR firms can be tend to leak out more information, as a responsible corporate people, those positive image may motive to them to investors and other stakeholders. Therefore, having a clear understanding of how to promote CSR is a precondition to choose, voluntary or mandatory. As Porter(2006) said that "in order to advance CSR, it must be rooted in a broad understanding of the interrelationship between a company and society while at the same time anchoring it in the strategies and activities of specific companies". It seems that how a comfortable interrelationship is good for the link of social performance and qualitative factors. Making all of the participant be in their comfort zone is the key to keep a health innovation for CSR. If the power of any side is too strong to ignore the others or too weak to catch up, this will break the balances. Therefore, choose a appropriate mechanism can control the whole system and keep it performance to a high...